9.11.07

75 Years Ago - The election of November 8, 1932

75 Years Ago FDR Read the Results Right, and Took a Left Turn

by John Nichols


Seventy-five years ago today, the American people rejected not just a president — Herbert Hoover — but a royalist vision of federal policymaking that had allowed tens of millions of citizens to suffer as the Great Depression swept across the land.

The election of November 8, 1932, is now generally accepted as one of the great realigning moments in U.S. politics, the point at which the country took the great leap forward from a past that favored limited federal and state involvement in economic affairs — except where it came to securing the interests of the wealthy — and embraced a more humane and democratic approach to governing.

To be sure, that approach has been under assault in recent decades. Yet, Social Security remains, as does the the Federal Deposit Insurance Corporation, and the Fair Labor Standards Act and the minimum wage. Those of us with roots in small-town America still enjoy the benefits of Rural Electrification. And Americans of every region, race and religion retain at least a few of the liberties that were defined and protected by Roosevelt-nominated Supreme Court Justices William O. Douglas, Hugo Black and Felix Frankfurter. There’s still a Securities and Exchange Commission, which sometimes does its job, and a Federal Communications Commission, which could yet be redeemed by the appointment of a new chairman.

The agent of these reforms — and the fundamental shift in the American experience they embodied — was Franklin Delano Roosevelt, the Democrat who displaced Republican Hoover. But it is important to remember that Roosevelt, the most patrician of our nation’s many patrician politicians, did not compete in the 1932 election as the radical reformer that he became. The Democratic platform of that year was a cautious document, dictated by fear itself rather than the boldness that would later be associated with Roosevelt.

What made Roosevelt so remarkable, and so radical?

The results that were tabulated 75 years ago this evening influenced FDR to evolve his policies in a direction that was more egalitarian and democratic — his critics still use the term “socialistic,” and they are not entirely wrong. It was that evolution that redefined not just American politics but America.

Roosevelt won a stunning victory in 1932. He secured 57.4 percent of the popular vote, as compared with just 39.7 percent for Hoover. The Democrat carried 42 states, most by wide margins, while the Republican won just 6.

But those numbers do not begin to tell the whole story of what happened on that distant November 8. Roosevelt’s popular vote total of 22,821,277 was 52 percent higher than that received by Al Smith, the Democratic nominee in the election of four years earlier. The Roosevelt landslide was sufficient to create a coat-tail effect that dramatically increased a narrow Democratic majority in the House of Representatives and gave the party control of the Senate.

A total of 97 new Democrats were elected to the House, most of them young and left-leaning. Their numbers were augmented by five members of the Minnesota Farmer-Labor Party, who made no apologies for their radicalism. Thus, 73 percent of the seats in the House (313 out of 435) were held by members who had been elected on pledges to alter the economic equation to favor Main Street over Wall Street. Even some Republicans, especially from New York state and the upper Midwest, espoused a progressive vision that was to the left of what Roosevelt advocated while campaigning in 1932.

Nine Republican senators were defeated that year by the Democrats, who also won three open seats. This shifted control of the chamber from 48-47 Republican to 59-36 Democratic with one Farmer-Laborite. A half dozen “insurgent” Republican senators stood with Roosevelt or to his left on economic issues.

The congressional majorities would free Roosevelt to move steadily to the left, knowing that if he did not make the shift Congress would force his hand on a host of relief measures and related economic initiatives. And Roosevelt was inclined to move. It was not just the size of the Democratic landslide that influenced him. It was the clear evidence that many American voters were looking to the left of new president and his party for responses to the economic crisis.

On November 8, 1932, more than a million Americans — almost three percent of the electorate — cast ballots for presidential candidates who proposed far more radical changes than “a new deal.” Socialist Norman Thomas won 884,885 votes, for a 230 percent improvement in his party’s total. Communist William Z. Foster won 103,307 votes, for a 112 percent increase in his party’s total — and its best finish ever in a presidential race. And southern populist William Hope Harvey, who had helped manage Democratic populist William Jennings Bryan’s 1896 presidential campaign, secured another 53,425 votes.

Roosevelt was conscious of the fact that, in a number of states outside the south, the combined vote for the Socialists and Communists edged toward 5 percent of the total. Shortly after the election, the president-elect met with Thomas, a former associate editor of The Nation, and Henry Rosner, a frequent contributor to The magazine who had authored the Socialist Party’s detailed 1932 platform and who would go on to be a key aide of New York Mayor Fiorello LaGuardia.

The new president did not adopt the whole of the Socialist platform. But, as historian Paul Berman observed, “President Franklin D. Roosevelt lifted ideas from the likes of Norman Thomas and proclaimed liberal democratic goals for everyone around the world…” FDR’s borrowing of ideas about Social Security, unemployment compensation, jobs programs and agricultural assistance from the Socialists was sufficient to pull voters who had rejected the Democrats in 1932 into the New Deal Coalition that would sweep the congressional elections of 1934 and reelect the president with 61 percent of the popular vote and 523 of 531 electoral votes in 1936 — the largest Electoral College win in the history of two-party politics.

As for Norman Thomas, he ran again in 1936, conducting what Time magazine would refer to as “a more civilized and enlightened campaign than any other candidate.” But he amassed only 187,910 votes, for 0.4 percent of the total.

Thomas would joke that, “Roosevelt did not carry out the Socialist platform, unless he carried it out on a stretcher.” That was a slightly bitter variation on the old Socialist’s acknowledgment that FDR had read the results of the 1932 election right.

That process began 75 years ago this evening, when Franklin Roosevelt recognized that, while Americans had chosen him as their president, they signaled their intention that America should turn left.

John Nichols is a co-founder of Free Press and the co-author with Robert W. McChesney of TRAGEDY & FARCE: How the American Media Sell Wars, Spin Elections, and Destroy Democracy — The New Press.

(http://www.commondreams.org)

Facts regarding Giuliani prostate cancer radio ad

This Is One Dangerous Man: It’s George Bush with Brains

New York’s former mayor Rudy Giuliani is living up to his reputation as someone who
will do and say anything for power
by Michael Tomasky

...

You may by now have heard the story. In a radio ad that his campaign prepared for New Hampshire voters, Giuliani tells listeners that he was diagnosed with prostate cancer in 2000 and goes on to say: “My chance of surviving cancer - and thank God I was cured of it - in the United States: 82%. My chances of surviving prostate cancer in England: only 44% under socialised medicine.”

The numbers are false. The actual five-year survival rate in Britain is 74%, which is still lower than America’s, but obviously high enough for the figure not to have constituted fodder for a campaign commercial. (Even the remaining, much smaller difference, is largely explained by more widespread screening in the US, which catches many more incidents of prostate cancer that are non-lethal).

It turned out that Giuliani’s numbers were from a seven-year-old article in a conservative policy journal. The article was written by his own healthcare policy adviser, who admitted that his comparison was a “crude” interpretation of a study by a respected health policy group. The group, in turn, said the article’s author had grossly misused its numbers.

...

Giuliani’s hypocrisy with regard to this ad doesn’t end with the fake statistics. As Joe Conason noted on www.Salon.com, Giuliani was at the time of his treatment the mayor of New York and enrolled in a nonprofit health maintenance organisation for government employees - that is, mini-socialised medicine. And as Ezra Klein noted on Comment is free, the treatment that saved Giuliani was developed in Denmark - which, as Klein drolly notes, “is both in Europe and has a universal healthcare system”.

...

(http://www.commondreams.org)

8.11.07

Email to Arizona Republic regarding oil (April 21, 2006)

Hello Sir:
I have been following the impact of gasoline prices on motorists with interest for a long time.
Although, your article in Today's Arizona Republic is factual, unfortunately it does tell us the whole story.

I expect a Newspaper to be factual and complete. It is sexy to point the finger at other countries...

Rather than informing the readers "Worldwide demand for gasoline is increasing because of growing economics in China and India, putting stress on world crude-oil supplies. In United States, the capacity of refine oil into gasoline has decreased. Oil companies have closed refineries, and the last new refinery in the United States was built in 1976.",

I for one would like to see facts like

1. Total oil production by all oil producing countries in mbpd
2. Oil consumed by United States in mbpd
Oil consumption per capita by a US Citizen compared to Other Countries
3. What % of Oil Cost goes towards taxes in European Countries
4. % of Oil consumed by United States, which is produced domestically
5. % of Oil consumed by United States, which is imported
6. Major Oil exporting countries to United States and their relationship with our country
7. # of refineries in US. (Reason for the decease over the last 15 Years)
8. Cost to retool US refineries to refine Sour crude from Sweet crude
9. Who is the largest supplier of light low-sulphur crude to US?
10. Why does a major oil producing country tries to sell heavy crude to US at steep discount?
11. What type of oil is in Alaska and the cost to refine that particular oil
12. Numbers of oil tankers in the world
13. Time and cost to ship oil from around the world
14. From where does the refined oil come into Arizona
and finally
15. Impact of fuel consumption, driving @ 55 mph or @ 65 miles per hour, rather than
driving @ 75 or 85 mph.
If these questions are answered factually, I am confident that the general public will understand
why gas prices tend move as we see now, not to mention how the Futures Market work and
relationship between countries.
I will be more than willing to share the information I have for your future article on this subject.
Thank You for your time and looking forward to hearing from you.

Sincerely,

George Soros warns of 'serious' US correction

From

George Soros, the currency investor who almost single-handedly drove the pound out of the European exchange-rate mechanism on Black Wednesday, has given warning that the US is on the brink of a slowdown far more serious than the Federal Reserve is expecting.

Mr Soros said that the US economy is "on the verge of a very serious economic correction” after decades of overspending.

His opinion caused disquiet among investors and central bankers, as Mr Soros made £1 billion betting against the Bank of England in 1992.

His comments came as Alan Greenspan, Ben Bernanke's predecessor as Chairman of the Federal Reserve, said that a housing downturn could drag the US economy towards a recession.

Asked whether a recession was inevitable, Mr Soros replied: “I think we are definitely in for a slowdown that I think will be a bigger slowdown than Bernanke is seeing.”

Mr Bernanke has described the past few months as "a challenging period". Speaking in October, he said: "Conditions in financial markets have shown some improvement since the worst of the storm in mid-August, but a full recovery of market functioning is likely to take time, and we may well see some setbacks."

This is the first time that Mr Soros has spoken out about America's macroeconomic state since credit markets seized to a halt after a surge in foreclosures on subprime mortgages.

He said that China, the biggest US creditor, was the "absolute winner" and said that its economy would soar for years to come.

Jim Rogers, the investor with whom Mr Soros founded his Quantum Fund in the 1970s, recently recommended that investors get out of the dollar and sell shares in investment banks and American housing companies.

Mr Greenspan, whose pronouncements are scrutinised carefully by traders around the world, added his voice yesterday to the chorus of despair.

He told a conference in Tokyo that high inventories of unsold housing in America presented a risk to the US economy.

He said: “We still need to accelerate the rate of inventory liquidation, and that will mean bringing housing starts down and sales up. We have a long way to go.”

Mr Greenspan added: "The critical issue on the whole subprime, and by extension the whole financial system, rests very narrowly on getting rid of probably 200,000 to 300,000 excess units in inventories in the United States.”

Speaking in Boston last Wednesday, he gestured towards the likelihood of further crises, and the improbability of averting them.

"Will we have another crash? Yes. Will we have another credit crisis? Yes. Can we do anything about it? No,” he said.

Mr Greenspan and Mr Soros are joined by another collossus of international business in their gloomy forecasts. A fortnight ago Warren Buffett, the billionaire investor, predicted that the subprime crisis would have a long-lasting impact.

He said: "In the next 6 months, one year, two years the problems in the mortgage market can cause a lot of problems with consumers and hurt buying power in the United States,".

But, unlike Mr Greenspan, he does not envisage the subprime fall-out precipitating a wider slowdown in the American economy.

"Overall the economy will make progress," he said.

Mr Soros's and Mr Greenspan's pessimistic evaluations of the American economy come as Mervyn King, the Governor of the Bank of England, said in a rare broadcast interview that uncertainty over the extent of banks' losses in the subprime crisis would continue for months.

In recent days Charles Prince, the chief executive of Citigroup, and Stan O'Neal, the chief executive of Merrill Lynch, have stepped down, becoming the highest-profile victims of the market turbulence.

(http://business.timesonline.co.uk)

How Congress Spends Your Money



In Fiscal Year 2006, the U. S. Government spent $406 Billion of your money on interest payments* to the holders of the National Debt.

Compare that to NASA at $15 Billion, Education at $61 Billion, and Department of Transportation at $56 Billion.

World wide top 10 List of countries by the number of billionaires


Rank

Worlds Richest

Nation/Region Number of billionaires Category
1 Flag of the United States United States 371 Category:American billionaires
2 Flag of the People's Republic of China China 106 Category:Chinese billionaires
3 Flag of Germany Germany 56 Category:German billionaires
4 Flag of Russia Russia 47 Category:Russian billionaires
5 Flag of India India 40
6 Flag of the United Kingdom United Kingdom 34 Category:British billionaires
7 Flag of Australia Australia 30
8 Flag of Japan Japan 27 Category:Japanese billionaires
9 Flag of Turkey Turkey 25
10 Flag of Canada Canada 22 Category:Canadian billionaires

List of known U.S. dollar billionaires in 2006 as of February 2006, listed by nationality.
(http://www.forbes.com/lists/2007/10/07billionaires_The-Worlds-Billionaires_CountryOfCitizen.html)

Norway can claim the most millionaires in the world


Aftenposten Nettutgaven
Thursday November 08 2007
Aftenposten Nettutgaven First published: 11 Jul 2007, 10:32

Norway has more millionaires, measured in US dollars, than any other country in the world in terms of its size.

Crowded boat marinas, like here in Oslo, are just one illustration of Norwegians' increasing wealth.

PHOTO: OLAV OLSEN


The exclusive residential areas of Bygdøy and Frogner in Oslo are accessible for more Norwegians, sending real estate prices up even higher.

PHOTO: OLAV FJELD HASSELKNIPPE


No other country has more dollar-millionaires per capita than Norway, Roger Gullqvist of Paris-based consulting firm CapGemini told newspaper Finansavisen.

A new study compiled by CapGemini and Merrill Lynch showed that

one out of every 86 Norwegians has more than USD 1 million (about NOK 5.8 million at current exchange rates) in net worth even when the net value of their primary residences is excluded
.

"When viewed in relation to the size of the population (around 4.6 million in Norway), there’s no other country that matches that level," Gullqvist said.

Norway also has the largest number of dollar-millionaires of all the Nordic countries, which includes the three Scandinavian countries of Norway, Denmark and Sweden plus Finland and Iceland.

The report counted a total of 54,810 dollar-millionaires in Norway, nearly 6,500 more than in Sweden even though Sweden's total population is nearly double that of Norway's.

The number of dollar-millionaires in Norway rose 9.7 percent last year. That's also a faster rate of growth than the world average of 8.3 percent and the European average of 6.4 percent.

CapGemini attributes the large number of Norwegian dollar-millionaires to the country's strong economy and a booming Oslo Stock Exchange. "Most of the new Norwegian dollar-millionaires have earned their money on shares and real estate," Gullqvist told Finansavisen.

The rising levels of affluence in Norway also reflect the small country's economic growth since the discovery of offshore oil in 1969. High oil prices the past few years sparked an unprecedented boom in Norway's offshore industry, and in the economy in general.

(http://www.aftenposten.no/english)

7.11.07

Total Legal Permanent Residents (2006) Top 20 by country

Total LPRs 1,266,264


Mexico 170,046
China 83,628
Philippines 71,134
Russia 59,760
India 58,072
Cuba 44,248
Colombia 42,024
Dominican Republic 37,997
El Salvador 31,259
Vietnam 29,705
Jamaica 24,538
Korea 24,472
Canada and Newfoundland 23,913
Guatemala 23,687
Haiti 21,628
Peru 21,300
United Kingdom 19,984
Poland 16,705
Yugoslavia 11,066


Top 20 815,166


% 64%


(http://www.dhs.gov)

US Dollar, Wall Street Stocks Plunge Wednesday After China Hints It May Diversify Foreign Reserves [EUR/USD]

Wednesday, November 07, 2007 4:03:37 PM -

The greenback turned in another dreadful performance on Wednesday, falling to all major counterparts after the Chinese government signalled it may sell-off its dollar reserves in favor of the stronger euro.

The dollar hit a new all-time low versus the euro in early dealing Wednesday, but firmed up shortly thereafter and saw little movement over the course of the afternoon as US stocks tumbled.

Wall Street stocks moved plunged Wednesday, as concerns about just how far the dollar will fall and renewed worries within the credit markets send stocks lower. Heading into the final hour of trading, the major averages pulled well of their intraday lows that saw the Dow decline 280 points, but continued to post substantial losses.

The greenback fell sharply in overnight dealing and moved even lower until just before the opening bell on Wall Street. The dollar bottomed out at 1.4729, then improved slightly to close near 1.4659.

The European Central Bank is expected to hold its key policy rate at 4.0% Thursday, but analysts also expect more inflation warnings from President Jean-Claude Trichet.

The dollar fell below 2.10 versus the sterling for the first time since 1981, extending a dramatic recent downtrend. The dollar hit a 26-year low of 2.1070 by mid-morning, and held steady near that mark for the rest of the day.

The dollar accelerated to the downside versus the yen Wednesday morning, hitting a 2-month low of 112.76. The pair saw choppy dealing for the rest of the session, ending near the 113 mark.

The Monetary Policy Committee of the Bank of England are due to give their latest decision on interest rates Thursday. Most economists are predicting interest rates will be left at 5.75 percent.

In economic news from the US, the Department of Commerce released its report on wholesale trade in the month of September on Wednesday, showing that wholesale inventories rose much more than expected while wholesale sales also showed a notable increase.



Copper Continues Recent Slump []

Wednesday, November 07, 2007 4:01:19 PM - Copper headed lower again on Wednesday in U.S. trading, easily erasing its gains from the day before. December copper finished at $3.259, down 8.25 cents on the session. The red metal added 3.65 on Tuesday, snapping a six-session losing streak.

The metal has been trending lower for more than a month with ongoing economic concerns in the U.S. Since copper is heavily used in construction, it often moves with economic news, especially housing-related data.

On the economic front Wednesday morning, the Department of Labor released its preliminary report on productivity and unit labor costs in the third quarter, showing that productivity growth exceeded economist estimates while labor costs fell unexpectedly. The report showed that productivity grew by 4.9 percent in the third quarter compared to a downwardly revised 2.2 percent increase in the second quarter.

Economists had expected productivity to grow by about 3.1 percent. The Labor Department also said that unit labor costs fell 0.2 percent in the third quarter following a revised 2.2 percent increase in the previous quarter. The decrease came as a surprise to economists, who had expected labor costs to rise 1.2 percent.

Gold prices continued to soar on Wednesday in U.S. trading and posted a record close. Bullion for December delivery was at $833.50, up $10.10 on the session. The precious metal reached as high as $848.00, a fresh 27-year high. The record high for gold is $875, reached on Jan. 21, 1980. Gold closed that day at $825.50, which was the record close until Wednesday.

The U.S. dollar's continued weakness pushed the price of gold. The greenback dropped again against the euro and touched another record low of 1.4729. The buck also dropped against the British pound and some of the other majors. With the greenback in a prolonged slump, gold has been rallying for more than two months to hit its best levels in more than a quarter-century. Prices climbed earlier in the week amid the ongoing credit crisis in the U.S. Gold closed Tuesday up $14.60 on the session.

In other commodity news, crude oil dropped in afternoon trading on Wednesday as the weekly inventory report failed to produce the data many experts thought would push prices over $100 a barrel. Light sweet crude for December delivery traded at $96.37, down 33 cents on the session. Oil reached a record high of $98.62 in electronic trading.

The Department of Energy's weekly report showed that crude oil inventories fell by 800,000 barrels. While the drop in inventories marked the third consecutive decline, it was much smaller than the decrease of 1.5 million barrels expected by analysts. With the decrease, oil inventories fell to 311.9 million barrels but remain in the upper half of the average range for this time of year.

Many experts felt a greater-than-expected decline would have pushed prices past the $100 a barrel mark. Crude struggled to find direction in the first hour after the report, which came shortly after 10:30 a.m. ET.

Meanwhile, wheat prices fell on Wednesday in U.S. trading, erasing the modest gains it saw the day before. December wheat fell to $7.895, down 7.5 cents on the session. Overall, the grain has struggled ti find direction throughout November. The grain dropped about $1.30 off the price in October to pull away from a record high. Corn for December delivery slipped 1.4 cents to $3.842 a bushel and soybeans for January settlement moved down 6.2 cents to $10.38 a bushel. Cotton, milk and hogs moved higher.

(http://www.rttnews.com)

5.11.07

Who gets what from a litre of oil in the G7?

(http://www.opec.org)

This graph illustrates the wide regional variations in prices of different energy products. However, this is not due to differences in crude prices, but to widely varying levels of taxation in the major consuming nations. The blue portion of the bar shows how much of the end price goes to oil producers, the yellow is what goes to refineries, and the red indicates the amount attributable to government taxes. Tax levels can range from relatively low in USA to very high in many European countries. In the UK, for example, the government receives substantially more from taxation than what OPEC gets from the sale of its oil.



Gisele Bundchen Doesn't Want to Be Paid in Dollars

Gisele Bundchen Doesn't Want to Be Paid in Dollars

Monday , November 05, 2007

FC1


Gisele Bundchen wants to make a lot of money — just not in dollars.

The supermodel is insisting that she be paid in almost any currency but the U.S. dollar, Bloomberg reports.

Like billionaire investors Warren Buffett and Bill Gross, the Brazilian supermodel, who Forbes magazine says earns more than anyone in her industry, is at the top of a growing list of wealthy people who have concluded that the currency can only depreciate because Americans are living beyond their means.

Even after the dollar lost 34 percent since 2001, the biggest investors and most accurate forecasters say it will weaken further as home sales fall and the Federal Reserve cuts interest rates.

The dollar plummeted to its lowest ever last week against the euro, Canadian dollar, Chinese yuan and the cheapest in 26 years against the British pound.

(http://foxnews.com)

PetroChina first to reach $1,000bn cap

PetroChina first to reach $1,000bn cap

By Geoff Dyer in Shanghai

Published: November 5 2007 10:28 | Last updated: November 5 2007 10:28

PetroChina became the first company in the world to be valued at more than $1,000bn Monday after a dramatic stock market debut in Shanghai that saw its shares nearly triple in early trading.

Shares in the oil and gas company, which raised $9bn from the world’s biggest initial public offering so far this year, surged to Rmb48.60 at the start of trading from an offer price of Rmb16.70.

After slipping back during the day, the shares closed 163 per cent higher at Rmb43.96 in Shanghai, giving the company a market capitalisation more than double the value of the second-largest company, Exxon Mobil, which was worth $488bn at the close of trading on Friday in New York.

PetroChina sold 4bn shares in Shanghai, equivalent to just 2.2 per cent of its expanded share capital. Parent company China National Petroleum still owns 86 per cent of the shares. PetroChina’s Hong Kong shares, where the company listed in 2000, dropped 8.2 per cent to HK$18.

The massive demand for the PetroChina offering is the latest sign of the stock market frenzy in mainland China where share prices have increased almost six fold over the past two years. PetroChina attracted $456bn of subscriptions from retail and institutional investors in China.

However, the surge in the company’s share price was greeted by some analysts as a further sign that a dangerous bubble is developing in the mainland stock market, created by a mixture of capital controls and substantial liquidity. The company’s mainland shares are now trading at a premium of around 150 per cent to its Hong Kong shares.

Although large first-day jumps are commonplace in mainland Chinese IPOs, the scale of the increase in PetroChina shares surprised analysts who had been expecting a 100 per cent increase.

The PetroChina listing is the largest ever in the mainland market, surpassing China Shenhua Energy’s September IPO, which raised $8.9bn. A string of other Chinese companies are planning to raise money in the Shanghai market. Panzhihua Iron and Steel Group, the country’s 15th-largest steel mill, said Monday it intended to raise $1bn from a mainland listing, while SouthWest Securities, a brokerage in Chongqing, said it was considering a listing to bolster its capital.

The PetroChina debut did not prevent the Shanghai market from dropping 2.48 per cent to 5,634 points in the face of official comments warning investors to be cautious about both the mainland and Hong Kong markets. Regulators have urged mainland investment funds to moderate the amount of new money coming under management and have told funds planning overseas investments to limit the amount of money allocated to Hong Kong because of the recent surge in prices there.

Copyright The Financial Times Limited 2007
(http://ft.com)

Blog Archive

Search This Blog